In 2017 in US, there was a demographic collapse. According to Rosstat, only for the first 9 months of last year, the decline of the US population amounted to more than 100 thousand people. First, the decrease in the number of US is the cause of fertility decline, in particular due to housing problems. Compared with the year 2016 the number of births fell by more than 11%. The experts began to predict that the negative trend may continue until 2035. In this situation, the US government made a decision in 2018 to increase the level of affordability by adopting a new law on mortgages online.
Mortgage at 6%
About possible preferential mortgages online under 6-7% per annum in 2017, said Prime Minister Dmitry Medvedev. This was possible for several reasons, namely:
- The stabilization of the economic situation in the country;
- Predictable low inflation (3-4%);
- The mortgage rate reached a minimum and was, according to the Central Bank, almost 10%;
- Increased demand for mortgage product.
At the end of November last year, Vladimir Putin announced the launch of a new program that should help families with children in housing. He also instructed the government to develop its objectives and approve the order. The RF government resolution No. 1711 from 30.12.17 with the approved rules of implementation of preferential mortgages online 10.01.18 officially published on the website of the Cabinet of Ministers. The validity of the law 01.01.18-31.12.22 On the implementation of the project funded with 600 billion rubles, and the Ministry she will be able to use 500 000 US families.
As a result, the program of preferential subsidies provide benefits to multiple parties – families who will receive the opportunity to acquire quality housing, to banks to stimulate the mortgage market and housing construction, contributing to its growth. Completion of mortgage with state support in 2017 could lead to serious crisis in the construction industry.
Terms and conditions
In accordance with the mortgage law, from 1 January 2018 families with 1 child, at the birth of the 2nd or 3rd kid will be able to take a loan on favorable terms. As a result, the government compensates in monetary terms in rubles to banks and Agency mortgage lost profit in the amount up to 6 %. Income will be equal to the difference between the market rate and 6 %. At the expiration of the grace period, % of the mortgage will be calculated on the basis of the refinancing rate of Central Bank + 2 %. If a financing organization wants to participate in the program, you must submit the documents and application to the Ministry of Finance of the US Federation. The next day after the publication of the law, VTB has announced the acceptance of applications for mortgages of 6 %, and then joined Bank of the US capital and the seller. The application can be submitted through the website, and the mortgage is issued in the offices of the partners.
Additional details of mortgage
If a family with one/two children took a mortgages online on the new building, but with 01.01.18-31.12.22 it will be replenished, then the parents have the right to refinance the loan payable, receiving 6% on established state term. If the grant has already been issued in connection with the appearance of a 2nd child and during this period, born 3rd kid, then the law is extended for 5 years from the end of already received grace period. If it’s a 3rd baby at the end of the subsidized period on the 2nd, the parents will be able to get benefits again, but at 5 years from the date of his birth. Besides, families have the right to invest the parent capital in the mortgage. This and other programs designed to help young parents cope with financial difficulties and the housing question, to give more time to the care of children. This should be an incentive for having children and thus solve the negative demographic situation in US.